Accounts receivable, related party –

In the second quarter of 2018, the Company recognized $28,194 of revenue on the sale of stormwater products to a customer that is considered to be a related party because it beneficially owns greater than 5% of the Company’s issued and outstanding common stock.

Accrued expenses –

At September 30, 2018 and December 31, 2017, accrued expenses included $261,875 and $269,375, respectively, for fees due to directors of the Company for their services as directors.

Due to investors

– In the first nine months of 2018, two investors considered to be related parties because they individually beneficially own greater than 5% of the Company’s issued and outstanding common stock, made cash advances to the Company totaling $2,383,000

structured

as short-term loans. During the year ended December 31, 2017, these same related party investors made similar cash advances to the Company totaling $3,682,000. The specific terms of these loans have not yet been determined. However, the Company is accruing interest on these loans at a rate of 10% per annum, which accrued interest totaled approximately $1,352,000 at September 30, 2018 and $709,000 at December 31, 2017.